I have recently been asked by our residents association to vote on whether or not to join a court action to establish how much we should pay off a loan taken out by the (now defunct) developer of our properties.
In other words let the court decide how much we have to pay off this debt in order to get our Title Deeds.
However what is not clear is whether or not the court applies some kind of formula to decide on what portion of the debt they deem 'fair'. We've been told each owner will have to pay an amount which is in direct proportion to the size of their respective property, but it is unclear whether this applies to the whole debt or just a portion of it.
Has anyone any experience of such court action and as a result any answers as to what formula the court would apply/does apply?

Has the residents association approached the bank to see what they are willing to accept? A settlement with the bank directly may be less expensive than a court action - and I'm sure that any action would be vigorously defended by the bank - and if the bank were to lose the case it could appeal to the Supreme Court.

I'm sure the bank will not want to throw you out of your homes and repossess them. The negative publicity such an action would generate would be extremely bad for the bank's business - and the island's property market. Also, the banks need money not properties - which they'll have to maintain and repair to keep them in a marketable condition at their cost.

But if it does go to court, I hope the judge will understand the banks stupidity/recklessness in what it has done and decides in your favour.